THE Australian Election Commission has defended the integrity of its count after claims by Clive Palmer of tampering.

And in a statement, it says the High Court, acting as the Court of Disputed Returns, is the proper place to dispute election results, as Mr Palmer suggested a new election be held in the seat of Fairfax.

"Today the AEC attended a Federal Court hearing with respect to an injunction sought by Mr Clive Palmer to suspend counting in the division of Fairfax," the AEC statement said.

It noted the court had reserved its decision and an injunction was not granted, and counting persists today.

"The AEC further notes there is a proper, transparent and evidence based process for dealing with allegations of illegal practice - through the High Court of Australia sitting as the Court of Disputed Returns (CDR)," it said.

"This is the only way in which the Electoral Act provides for a dispute to be dealt and allows any candidate, political party or member of the public to petition the CDR to have a particular electoral result examined."

The AEC confirmed the candidates contesting Fairfax had been advised of a sorting error during election night detecting during normal quality control checking processes.

It meant 750 votes were published under the Buderim instead of Coolum beach and the "anomaly detected makes no difference" to the count.

Earlier today, Mr Palmer told News Corp Australia he had been to the Federal Court in Brisbane to seek an undertaking that would preserve all Australian Electoral Commission documents relating to counting in the Sunshine Coast seat.

This would ensure "evidence'' was intact when he continued his legal action.

Mr Palmer said he had received correspondence from the AEC alerting him to an "apparent inconsistency'' in voting figures on the AEC website for the Coolum Beach pre-poll voting centre.

The advice said there was a difference of around 750 votes between House of Representatives and Senate counts for that polling place. The discrepancy was found to be "counter-balanced'' with a similar imbalance in Buderim.

In its letter to Mr Palmer, the AEC said the anomaly made no difference to the total number of votes already recorded and therefore had no impact on the relative position of the candidates.

"It's a farce,'' Mr Palmer said. "How can 768 votes go missing from one booth and turn up at another. We will proceed with legal action there's no doubt.

"This is not a matter of whether I win or lose. I'm raising this because it is wrong.''

Mr Palmer believes someone could have put the House of Representatives ballots in at Coolum, then realised they had not provided a corresponding number of Senate votes but no longer had access to Coolum.

He said there was a possibility they then could have put the Senate votes in at Buderim to try and cover up the move.

Latest counting shows the mining magnate's lead in Fairfax has been slashed to 209 votes after the counting of more postal votes.

The billionaire is being reeled in by the LNP's Ted O'Brien, who is back in contention after being more than 2000 votes behind late last week.

Mr O'Brien has been attracting 63 per cent of the postal votes to Mr Palmer's 37 per cent.

This morning's counting did focus on postals, however, and there are still 2266 absentee votes to tally, which are likely to favour the mining magnate.

The latest two-candidate-preferred prediction has Mr Palmer a whisker ahead with 50.13 per cent to Mr O'Brien's 49.87.

More results are expected late this afternoon and counting will continue until the cut-off for postal votes on Friday.

Left to process are the absentee votes, 2376 pre-poll and 954 postal.

There are also 730 provisional votes, which could dictate who wins. These are cast in circumstances where an elector's name cannot be found on the roll, or the name has already been marked off the roll. The vote cannot be counted until a careful check of enrolment records and entitlements has been made.

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